Reconstruction Time for Peru after Severe Coastal Niño _Lima_Peru_9-22-2017
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 9/22/2017
GAIN Report Number:
Peru
Post: Lima
Reconstruction Time for Peru after Severe Coastal Niño
Report Categories:
Trade Policy Monitoring
Wood Products
Approved By:
Kirsten Luxbacher
Prepared By:
FAS Lima staff
Report Highlights:
The Government of Peru recently approved a reconstruction plan called “Reconstruction with Changes”
for S/. 25,655 million soles or $7.8 billion dollars. According to this plan, the 13 regions negatively
impacted by the Coastal Niño induced flooding and landslides in Peru will receive reconstruction
assistance. This proposed plan is expected to positively impact U.S. exports of wood and wood products
to Peru. Exports of these products totaled almost $10 million in 2016.
General Information:
As part of its plan to rebuild after the Coastal Niño induced flooding and landslides that impacted many
parts of Peru in early 2017, the Peruvian Cabinet approved by Supreme Decree 091-2017-PCM a
reconstruction plan called ¨Reconstruction with Changes¨ published on September 12, 2017. The
approved budget is S/. 25,655 million soles or $7.8 billion dollars. The objective is to rebuild and
improve infrastructure in affected areas. The Plan is four percent of Peru´s total GDP and will promote
the creation of 150,000 jobs within Peru in 2018. The largest portion of the budget, 77 percent, will go
towards the replacement of damaged infrastructure, 21 percent will go towards prevention works and
urban planning, and two percent towards capacity building. Piura, one of the hardest hit regions, will
receive 30 percent of total allocated resources.
Table 1. Type of infrastructure for reconstruction & quantity
48,731
Houses
7,470
Km in roads
2,638
Km of highways
1,609
Schools
192
Bridges
154
Health institutions
Prevention works and urban planning will focus on cleaning rivers and streams bottoms. The works will
cover 18 rivers and build storm drains in four cities.
The ¨Reconstruction with Changes¨ plan is based on Law 30,556 published on April 28, 2017. The Law
approved provisions of extraordinary character for the interventions of the national government and
provides the creation of an Authority for the Reconstruction with Changes. The Authority board is
composed by four ministers: Economy and Finance, Transportation and Communications, Housing,
Construction and Sanitation, and Agriculture and Irrigation. The authority will have a term of three
years, and may be extended for a period of one year.
Between April and September, the Authority held several coordination meetings at the local and
regional level. Within that time frame, the allocated budget increased by ten percent and the Authority
collected and validated the urgent needs of the 13 regions impacted by flooding.
It is expected that implementation of the Plan will begin in the near future. FAS Lima sees export
opportunities for the use of U.S. wood and wood products in concrete forming projects linked to the
reconstruction. Wood frame housing is not common in Peru, where there is a strong preference for
concrete construction despite the cheaper costs and advantages wood frame construction would offer in
this earthquake prone country. This being said, in the long term, FAS Lima foresees opportunities for
wood frame construction and increased export opportunities in this sector as several Peruvian
institutions are increasingly becoming interested in the sector and are eager to learn from U.S. expertise
and adapt it to local conditions.
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 9/22/2017
GAIN Report Number:
Peru
Post: Lima
Reconstruction Time for Peru after Severe Coastal Niño
Report Categories:
Trade Policy Monitoring
Wood Products
Approved By:
Kirsten Luxbacher
Prepared By:
FAS Lima staff
Report Highlights:
The Government of Peru recently approved a reconstruction plan called “Reconstruction with Changes”
for S/. 25,655 million soles or $7.8 billion dollars. According to this plan, the 13 regions negatively
impacted by the Coastal Niño induced flooding and landslides in Peru will receive reconstruction
assistance. This proposed plan is expected to positively impact U.S. exports of wood and wood products
to Peru. Exports of these products totaled almost $10 million in 2016.
General Information:
As part of its plan to rebuild after the Coastal Niño induced flooding and landslides that impacted many
parts of Peru in early 2017, the Peruvian Cabinet approved by Supreme Decree 091-2017-PCM a
reconstruction plan called ¨Reconstruction with Changes¨ published on September 12, 2017. The
approved budget is S/. 25,655 million soles or $7.8 billion dollars. The objective is to rebuild and
improve infrastructure in affected areas. The Plan is four percent of Peru´s total GDP and will promote
the creation of 150,000 jobs within Peru in 2018. The largest portion of the budget, 77 percent, will go
towards the replacement of damaged infrastructure, 21 percent will go towards prevention works and
urban planning, and two percent towards capacity building. Piura, one of the hardest hit regions, will
receive 30 percent of total allocated resources.
Table 1. Type of infrastructure for reconstruction & quantity
48,731
Houses
7,470
Km in roads
2,638
Km of highways
1,609
Schools
192
Bridges
154
Health institutions
Prevention works and urban planning will focus on cleaning rivers and streams bottoms. The works will
cover 18 rivers and build storm drains in four cities.
The ¨Reconstruction with Changes¨ plan is based on Law 30,556 published on April 28, 2017. The Law
approved provisions of extraordinary character for the interventions of the national government and
provides the creation of an Authority for the Reconstruction with Changes. The Authority board is
composed by four ministers: Economy and Finance, Transportation and Communications, Housing,
Construction and Sanitation, and Agriculture and Irrigation. The authority will have a term of three
years, and may be extended for a period of one year.
Between April and September, the Authority held several coordination meetings at the local and
regional level. Within that time frame, the allocated budget increased by ten percent and the Authority
collected and validated the urgent needs of the 13 regions impacted by flooding.
It is expected that implementation of the Plan will begin in the near future. FAS Lima sees export
opportunities for the use of U.S. wood and wood products in concrete forming projects linked to the
reconstruction. Wood frame housing is not common in Peru, where there is a strong preference for
concrete construction despite the cheaper costs and advantages wood frame construction would offer in
this earthquake prone country. This being said, in the long term, FAS Lima foresees opportunities for
wood frame construction and increased export opportunities in this sector as several Peruvian
institutions are increasingly becoming interested in the sector and are eager to learn from U.S. expertise
and adapt it to local conditions.